Maryland Governor Hogan Says Sports Betting Launch Prior to the Start of the NFL Season is “Just Impossible”

Maryland’s Sports Wagering Application Review Committee (SWARC) held its first meeting on Monday morning, a significant step towards the implementation of legal sports betting in the state. The Committee voted that it will not require any additional information from certain licensees and will allow the Maryland Lottery and Gaming Commission to handle the review and distribution of licenses. The Commission could vote on key sports betting venues as soon as their meeting in September.

While these developments are significant as Maryland works toward a full-scale sports betting launch, hopefully by the end of 2021, the original goal of a launch prior to the start of the NFL season on September 9 seems very much out of reach. Governor Larry Hogan reiterated this saying “they said it’s just impossible to get it done by the start of football season.”

Maryland Legal Sports Betting

On November 4, 2020, Maryland voters first approved a referendum on the expansion of commercial gaming to “authorize sports and events betting” by a margin of 2 to 1. This vote paved the way for the introduction of HB940 in the House Ways and Means Commission in February 2021. The House first passed the bill on March 10, 2021, before the upper chambers approved it in April. Governor Larry Hogan signed sports betting into Maryland law in May 2021.

Venues to Receive Licenses

Maryland’s sports betting law specifically names 20 sports betting venues that will get licenses to operate, broken down into Class A and Class B:

Class A

• Casinos
  • Live! Casino
  • Horseshoe Casino
  • MGM Casino
  • Hollywood Casino
  • Ocean Downs Casino
  • Rocky Gap Casino
• Professional Sports Venues
  • Oriole Park (Baltimore Orioles)
  • FedEx Field (Washington Football Team)
  • M&T Stadium (Baltimore Ravens)
• Laurel Park/Pimco Race Course (one license)

Class B

• Maryland State Fair
• Off-Track Betting (OTBs)
  • Long Shot’s
  • Riverboat on the Potomac
  • Greenmount Station
  • Jockey Bar and Grille
• Bingo Halls
  • Bingo World
  • Rod ‘N Reel

SWARC Responsibilities

The SWARC is tasked with awarding licenses, establishing the license application process, and determining if a license is in the “public interest” The SWARC will work primarily with Class B (hotels, restaurants, bars) and mobile license applicants. This includes compliance with Maryland’s emphasis on the diverse representation of multiple racial, ethnic, and gender groups.

The SWARC will need to develop a competitive scoring system to guide the licensing process, something they have yet to begin. Other states have well-developed scoring systems that will be referenced by Maryland’s committee. 30 Class B licenses and 60 mobile licenses will be made available to bidders. The SWARC plans to meet monthly to accomplish these goals.

Revenue Influx

Maryland has already seen significant growth in revenue related to gaming activities – Gross Gaming Revenue (GGR) in the state was over $180 million in July, an all-time high and up 4.5% on the previous month. Of course, sports betting will further increase this income as Maryland plans to implement a 15% tax on sports betting GGR. That will result in an estimated $15-19 million for the Education Trust Fund.

Next Steps

On July 15, the Maryland Lottery and Gaming Commission approved a set of regulations that still need to be published by the Maryland Register. Once they are published, a 30-day public comment period will begin. The timeline for different applicants will vary, and the Maryland Lottery and Gaming Control Agency said “for a business that is not named in the Sports Wagering Law, the review by SWARC and a licensing background investigation could take between 12 and 24 months from May 2021.” SWARC is planning to meet again in late September.

Larry Hogan told the media outlet Maryland Matters on August 14 that he “pressed them pretty hard about making sure we get it done at least by the end of football season when all the betting takes place, really – in the playoffs and the Super Bowl.” The NFL season kicks off on September 9 and will bring with it massive potential for GGR growth, something Maryland will be very motivated to participate in.